Tall Oak Midstream III announces new gathering system in Oklahoma

Tall Oak Midstream III, LLC announced that the company will construct a natural gas gathering system in southeast Oklahoma’s East STACK play.

Producers working in the East STACK are developing multiple stacked pay zones, including the Woodford, Caney and Mayes formations. The system will span Hughes County, as well as portions of Seminole, Pontotoc, Coal, Pittsburg, Atoka and McIntosh counties.

Initially, Tall Oak III’s East STACK system will consist of more than 50 miles of 12 - 20 in. pipeline, two compression facilities, a 5000 bpd stabiliser, an associated slug catcher and condensate storage facilities. The system is expected to come into service by year-end. Tall Oak III expects to add a cryogenic processing facility to its East STACK system and is engaged in discussions with the area’s producers to determine the best size for the plant and a strategic location that ensures flexible access to premium residue and NGL markets.

The announcement comes just two months after the formation of Tall Oak III, which is backed by an initial equity commitment of up to US$200 million from EnCap Flatrock Midstream and the Tall Oak III management team. Tall Oak Midstream II, LLC continues to focus on operating and expanding its midstream assets in the Northwest STACK play. Tall Oak Midstream I was sold to EnLink in January 2016.

“The East STACK is an exciting play that lacks the infrastructure required to handle the emerging growth in production from rich, horizontal gas wells,” said Carlos Evans, Chief Commercial Officer of the Tall Oak companies. “The Tall Oak companies have quickly established a very strong record of rapidly developing gathering and processing solutions that offer reliable access to the best markets. We remain focused on deploying the necessary capital and developing the infrastructure needed to stay ahead of our customers’ immediate and long-term needs.”